DEPARTMENT OF BUSINESS MANAGEMENT
POST-GRADUATE DIPLOMA IN MARKETING
INDUSTRIAL MARKETING
EXAMINATION 2016
70 marks 2 hours
Please submit the questoo a er together with your aoswer book.
Kellogg’s is ooe of the leadiog com aoies io rovidiog food items (es ecially breakfast items
aod cooveoieoce food) to its customers located worldwide. The com aoy was established io
1906 io USA aod tll oow, it’s beeo followiog the hiloso hy of ‘improved diet and improved
health’.
As the world's leadiog cereal maoufacturer, oot ooly has Kellogg’s beeo serviog its customers
at a oatooal level, it has also beeo able to successfully establish a worldwide oetwork
globally. Sioce 1938, Kellogg’s has o eoed maoufacturiog laots io Uoited Kiogdom,
Australia, Caoada, aod Asia. Kellogg’s’ roducts are oow maoufactured io 19 couotries aod
are sold io a roximately 160 couotries. It roduces about 40 difereot ty es of cereals aod
soacks, such as Kellogg's Coro Flakes, Rice Kris ies, S ecial K, Fruit o' Fibre, as well as the
Nutri-Graio cereal bars.
Kellogg's obtaios its raw materials of wheat, coro, cocoa, rice aod sugar from rimary
su liers arouod the world. These materials hel make over 40 difereot breakfast cereals
aod soacks to sell to customers. It is a large-scale maoufacturer aod stores sufcieot stocks
to meet customer orders.
, Kellogg’s ossesses ao orgaoized aod well equi ed traos ortatoo aod storage system to
eosure the roducts do oot s oil aod reach customer io foe quality. They follow the leao
roductoo system to streamlioe rocesses aod elimioate waste. Kellogg Plaooiog System
(KPS), a large-scale lioear rogram, is used for o eratoos, roductoo, ioveotory aod
distributoo system. It hel s the com aoy io o tmiziog roductoo aod ioveotory costs aod
budgetog.
SOURCE: htt :////www.tradegecko.com//blog//su ly-chaio-maoagemeot-factory-su ermarket-shelves-
kelloggs
QUESTION 1 (15 marks)
The success of Kellogg’s is de eodeot oo the availability of aod access to oumerous ty es of
B2B roducts. Ideotfy aod discuss the difereot ty es of B2B roducts that geoerally exist.
Which of these ty es of B2B roducts do you thiok is most relevaot to Kellogg’s? Motvate
your aoswer.
1. Major equi meot
- Ca ital goods – buildiogs, elevators
- Iostallatoos
- De reciate over tme
- Ofeo leased, customised, aod sold directly
2. Accessory equi meot
- Less ex eosive
- tools
- Light fxtures, rioters
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3. Raw materials
- Agriculture
- Natural gas, iroo,
- coostructoo
4. Com ooeot arts
- S ark, lugs, tres, wiodows,
- Fioished or almost foished roducts
- Used to com lete other roducts
- Joiot demaod
5. Busioess services
- Fioaocial services, legal services,
- Ex eoses that do oot become art of foal roduct
6. Su lies
- Products that doo’t eod u io foal roduct
- MRO maiotaio, re air, o eratog tools
- Kimberly clark, toilet a er, soa ,
7. Processed materials
- Chemicals, coro syru
- Used to full exteot io ooe use
- Cake boss cream cheese
- Plastcs
Out these, those most relevaot to Kellogg’s would frstly be raw materials. Kellogg’s is most
famous for their cereal aod breakfast food, so the most im ortaot iogredieots to them would
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